UMR Student Housing Plan in Downtown Rochester Wins Approval
St. Paul, MN (KROC-AM News) - A plan to convert a large downtown Rochester hotel into student housing for the University of Minnesota-Rochester has been recommended for final approval.
The University of Minnesota Board of Regents Finance and Operations Committee today reviewed and voted to approve a 12-year lease for the current Double Tree Hotel at 150 South Broadway. Final approval is expected when the full Board of Regents meets tomorrow.
The plan calls for the conversion of more than 185 regular hotel rooms into student housing with more than 400 beds. The revamped hotel will also include fitness, recreation, and food service areas for the growing number of students enrolled in UMR.
The lease calls for the $7.76 million cost of the conversion to be covered by the owners of the property. UMR will pay just over $3 million to Titan Development in the first year of the lease, with the rent rising by 1.75-percent in each of the following years. UMR will also be responsible for the cost of property taxes and utilities, which is expected to start out at around $1 million each year.
If the lease wins final approval, it will take effect in August of next year.